SEBI (COLLECTIVE INVESTMENT SCHEMES) REGULATIONS, 1999 – AN OVERVIEW :

SEBI (Collective Investment Schemes) Regulations, 1999 defines Collective Investment Management Company to mean a company incorporated under the Companies Act, 2013 and registered with SEBI under these regulations, whose object is to organize, operate and manage a collective investment.

No person other than a Collective Investment Management Company which has obtained a certificate under the regulations should carry on or sponsor or launch a collective investment scheme. Any person proposing to carry any activity as a Collective Investment Management Company on or after the commencement of the regulations should make an application to SEBI for the grant of registration in the specified form.

“Close ended collective investment scheme” means any collective investment scheme launched by a collective investment management company. In which the maturity period of the collective investment scheme is specified and these is no provision for repurchase before the expiry of the collective investment scheme.

“Collective investment scheme property” includes :

(i) subscription of money or money’s worth (including bank deposits) to the collective investment scheme;

(ii) property acquired, directly or indirectly, with, or with the proceeds of, subscription of money retired to in
item (i); or

(iii) income arising, directly or indirectly from, subscription money or property retired to in item (i) or (iii).